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Actual Cash Value (ACV) also interpreted as the term to mean "fair market value," the insurance industry's traditional definition: What it will cost to replace a property at the time of loss after subtracting depreciation. An insurance valuation method used for automobiles which is based on the cost of repairing or replacing the damaged private passenger autos with one of like kind and quality, or its replacement cost less physical depreciation. Replacement cost is the preferred method of insuring and based on market value replacement cost, which varies by diferent states.
See also:
split limits
personal injury protection
collision coverage
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